Palo Alto Networks in Talks to Acquire CyberArk for Over $20 Billion

Palo Alto Networks is reportedly in talks to acquire CyberArk Software, valuing the Israeli cybersecurity company at over $20 billion. CyberArk's shares jumped 12% after the Wall Street Journal's report, despite falling earlier in the day. The acquisition would be a significant move for Palo Alto Networks, which has a market capitalization of $19.3 billion.

Palo Alto Networks, a global cybersecurity leader, is reportedly in advanced discussions to acquire CyberArk Software, valuing the Israeli cybersecurity company at over $20 billion. The potential acquisition comes as a significant move for Palo Alto Networks, which currently has a market capitalization of $19.3 billion. The news has sparked a notable reaction in the market, with CyberArk's shares jumping 12% following the Wall Street Journal's report, despite earlier declines.

The acquisition, if successful, would mark a strategic expansion for Palo Alto Networks, which has been focusing on platformization and entering new cybersecurity categories. CyberArk, known for its leadership in Identity Security and Privileged Access Management (PAM), would bring foundational technology essential for securing the AI era to Palo Alto Networks. This move aligns with Palo Alto Networks' vision that every identity, including human, machine, and AI, requires deep security for access across the modern enterprise.

The deal, if closed, would accelerate Palo Alto Networks' platform strategy by establishing Identity Security as a core platform. CyberArk's technology, which provides identity-aware security and real-time response, would be deeply integrated into Palo Alto Networks' Strata™ and Cortex® platforms. This integration aims to deliver near real-time security outcomes and extend privileged identity protection to all identity types, including AI agents.

The acquisition is expected to be accretive to Palo Alto Networks' revenue growth and gross margin, with the transaction anticipated to be immediately accretive. Additionally, the deal is projected to be accretive to free cash flow per share in fiscal year 2028 following the realization of synergies. The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close during the second half of Palo Alto Networks' fiscal 2026, subject to customary closing conditions.

This acquisition is part of Palo Alto Networks' broader strategy to address the convergence of identity and security. Securing privileged credentials for human and machine identities, including AI agents and workloads, is becoming increasingly critical for modern enterprises. The integration of CyberArk's Identity Security Platform with Palo Alto Networks' existing solutions aims to provide a comprehensive and integrated security portfolio, allowing customers to focus on their core business objectives while Palo Alto Networks secures their digital future.

The transaction is expected to unite two security leaders with similar values and strong cultures. The combined companies will offer the industry's most comprehensive and integrated security portfolio, providing customers with a single, trusted vendor for their most critical security needs.

References:
[1] https://www.paloaltonetworks.com/company/press/2025/palo-alto-networks-announces-agreement-to-acquire-cyberark--the-identity-security-leader